Glenmark receives final ANDA approval for Acamprosate Calcium Delayed Release Tablets

Glenmark Generics Inc, USA, the United States subsidiary of Glenmark Generics, has been granted Abbreviated New Drug Approval (ANDA) from United States Food and Drug Administration (US FDA) for Acamprosate Calcium Delayed Release Tablets, the generic version of forest Laboratories’ Camparl Delayed Release Tablets.

Acamprosate is indicated for the maintenance of abstinence from alcohol in patients with alcohol dependence. Based on IMS health sales data for the 12 month period during March 2013, Acamprosate garnered sales of $21 million.

Glenmark’s current portfolio consists of 88 products authorized for distribution in the U.S. marketplace and 53 ANDA’s pending approval with the U.S. FDA. In addition to these internal filings, GGI continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio.

Glenmark Generics is a subsidiary of Glenmark Pharmaceuticals and aims to be a global integrated generic and API leader.

RBI chief says reserve ratios may need to come down

The RBI has recently tightened monetary conditions by raising short-term interest rates and draining cash in a bid to defend the rupee

The Reserve Bank of India (RBI) chief Duvvuri Subbarao said on Tuesday that "perhaps" there was a need to reduce the reserves that banks have to set aside via the cash reserve or the statutory liquidity ratios.

The cash reserve ratio, or the amount of cash lenders must deposit with the Reserve Bank of India, stands at a record low of 4%. Meanwhile, the statutory liquidity ratio, which includes securities such as government bonds, stands at 23%.

Subbarao was speaking at a banking conference in Mumbai.

The RBI has recently tightened monetary conditions by raising short-term interest rates and draining cash in a bid to defend the rupee, but the currency has weakened nonetheless, sparking concerns the central bank would need to either raise the CRR or raise the key repo rate.

IDBI Bank puts Deccan Chronicle's newspaper titles on the block

Public sector lender IDBI Bank today issued fresh proposal to auction four newspaper titles owned by Hyderabad-based media house Deccan Chronicle Holdings (DCHL) to recover its dues.

The lender has said it will transfer four titles---Deccan Chronicle, Andhra Bhoomi, The Asian Age and Financial Chronicle---to the highest bidder.

"IDBI Bank, hereby, invites all the interested persons to submit their proposals/bids for acquiring, on an "as is" basis, the trademarks collectively or separately for each trademark," the lender said.

The notice further read,"As security for the financial assistance granted by IDBI Bank, DCHL along with the other co-owners has created a charge by way of hypothecation on their trademarkes...Due to failure on the part of DCHL to repay the financial assistance provided to it, IDBI Bank has decided to enforce the security."

IDBI Bank, in February, had issued similar notice, which had got a stay from the debt recovery tribunal (DRT) due to objections from other lenders.

DCHL owes around 18 lenders to the tune of Rs 4,000 crore.

Shares of the company were trading at Rs 2.27, up 0.9%.

Suprajit Engineering commences Commercial Production at new cable plant

Suprajit Engineering has commenced the Commercial Production at its new cable plant located in Pathredi with deliveries to customers. The company’s 100% Export Oriented subsidiary - Suprajit Automotive, has also started commercial production at its new cable plant at Doddaballapur with regular deliveries to overseas customers.

Suprajit Engineering is committed to being a world class organization, supplying cables and components to overseas and domestic customers in automobile and non-automobile sectors.

Tech Mahindra gains on plan to invest Rs 1,000 crore in next 3 years

Tech Mahindra is currently trading at Rs 1317.50, up by 51.70 points or 4.08% from its previous closing of Rs. 1265.80 on the BSE.

The scrip opened at Rs 1276.10 and has touched a high and low of Rs 1329.00 and Rs. 1276.00 respectively. So far 108508 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 1329.00 on 13-Aug-2013 and a 52 week low of Rs 775.00 on 30-Aug-2012.

Last one week high and low of the scrip stood at Rs 1329.00 and Rs 1209.00 respectively. The current market cap of the company is Rs 30600.35 crore.

The promoters holding in the company stood at 47.17% while Institutions and Non-Institutions held 42.62% and 10.22% respectively.

Tech Mahindra, a specialist provider of connected solutions to the connected world, is reportedly planning to invest around Rs 1,000 crore over the next 3 years to expand its infrastructure capacity and increase its delivery capabilities. This expansion plan is not only for big cities like Mumbai and Chennai but also for tier 2 and tier 3 cities.

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra.

Results

Scrip Name                 Alok Inds	Date  13-Aug-13
Amtek Auto-$	13-Aug-13
ANANDPROJ	13-Aug-13
Ashiana Ispat	13-Aug-13
Astrazeneca Phar	13-Aug-13
BF Utilities-$	13-Aug-13
Career Point	13-Aug-13
Educomp Sol	13-Aug-13
Emami Paper	13-Aug-13
Escorts	13-Aug-13
Fintech Comm	13-Aug-13
GMR Infra	13-Aug-13
Gujarat State Pet	13-Aug-13
GV Films	13-Aug-13
HEG	13-Aug-13
Igarashi Motors	13-Aug-13
Indian Oil Corp	13-Aug-13
Kalindi Rail-$	13-Aug-13
LML	13-Aug-13
Mahindra & Mahindra	13-Aug-13
Max India	13-Aug-13
Orient Paper	13-Aug-13
Pidilite Inds	13-Aug-13
Pratibha Inds	13-Aug-13
Rohit Ferro	13-Aug-13
Tata Steel	13-Aug-13
Voltas	13-Aug-13
Walchandnagar	13-Aug-13

              

YES Bank loses market value

YES Bank, which gets 69% of its funding from bulk deposits and debt

YES Bank lost almost half its market value in less than a month on investors' concern that a record surge in interest rates will erode profits and boost defaults. The stock has tumbled 43 per cent, the most in the S&P BSE Bankex Index, since the Reserve Bank of India on July 15 began taking emergency steps to tighten liquidity and bolster the rupee.

YES Bank, which gets 69 per cent of its funding from bulk deposits and debt, is among lenders that are most vulnerable if rates remain high, according to Espirito Santo Securities India.

The percentage of gross and net non-performing assets stood at five per cent and three per cent, respectively as against three per cent and two per cent, respectively. It said these slippages were short-term and it would be addressed during the current financial year.

Muthoot Finance files draft prospectus with SEBI to issue NCDs worth Rs 300 crore

Muthoot Finance is planning to raise Rs 300 crore through issue of secured non-convertible debentures (NCDs). In this regard, the company has filed the draft prospectus with market regulator Securities and Exchange Board of India (SEBI) for public issuance of the same.

The NCD issue aims at aggregating up to Rs 150 crore with an option to retain over-subscription of up to Rs 150 crore for issuance of additional NCDs aggregating to a total of up to Rs 300 crore.

The raised fund will be used for financing activities, including lending and investments, besides utilising them to repay existing loans, capital expenditure plans and to meet working capital requirements. ICICI Securities is the lead managers to the issue, while Link Intime India is registrar to the issue.

Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals.

Exports surge to 21-month high

July shows highest monthly jump in nearly 2 years, at 11.6 per cent; rupee's fall, some recovery abroad and govt's recent measures help

Exports in July soared 11.6 per cent to $25.8 billion, compared to $23.1 bn in the same month last year. This is the highest growth rate in exports in 21 months, since October 2011, when exports grew 23.7 per cent over the same month of the earlier year.

This financial year (from April 1), exports fell in May and June, by 1.1 per cent and 4.6 per cent, respectively.

The rise in July’s exports was mainly on account of a falling rupee (at an all-time low of 61.81 against the dollar last week), coupled with a rise in demand in America, Africa and East Asia.

And, imports in July were $38.1 bn, down 6.2 per cent from $40.6 bn in July last year.

“Continuing interest in Africa, Latin America, Asean (Association of Southeast Asian Nations) and the Far East regions is the main reason why exports have risen. We expect this trend to continue,” commerce secretary S R Rao said.

He said the government’s recent measures to help shipments would also help arrest the earlier fall in merchandise export. Total export in the April-July period reached $98.3 bn, about 1.7 per cent higher than the $96.6 bn in the corresponding period of 2012-13. In this period, imports rose 2.8 per cent to $160.7 bn against $156.3 bn in the same period last year, according to the data released on Monday.  The trade deficit in July, therefore, was $12.3 bn compared to $17.5 bn in July last year. During April-July, this deficit widened to $62.45 bn as against $59.7 bn in the corresponding period of 2012-13.In 2012-13, the current account deficit reached a historic high of 4.8 per cent of gross domestic product, due to a surge in import of gold and petroleum products.

“We expect our exports to do slightly better this year. Although the growth in four months has been a mere two per cent, our target is much higher, at 10 per cent for the present financial year,” he added.

In July, export of readymade garments, pharmaceuticals and textiles have been impressive; those of engineering goods and gold jewellery have fallen. Import of pearls, semi-precious and precious stones, transport equipment and fertilisers have risen; those of gold and silver, crude oil and vegetable oil have declined, said Anup K Pujari, director general of foreign trade.

According to M Rafeeque Ahmed, president, Federation of Indian Export Organisations, this positive trend in exports is likely to continue, with “positive signs emanating from the US and EU (European Union)”.

In July, crude oil imports stood at $12.7 bn, down eight per cent over the $13.8 bn in the same month last year. Total crude oil import in these four months of 2013-13 have reached $54.6 bn, up 2.7 per cent from the $53.2 bn in the same period of 2012-13.

“We expect this trend in exports to continue, as the government did the right intervention at the right time,” said Sanjay Budhia, chairman of the Confederation of Indian Industry’s export committee.

Non-oil imports in July reached $25.4 bn, falling 5.3 per cent against the $26.8 bn in July last year. However, during these first four months, non-oil imports rose three per cent, to $106.15 bn from $103.15 bn last year in the same period.

“The market is the US is gaining strength but the EU is still under economic stress. Though we have registered a growth of around 16 per cent in readymade garments in the US and EU markets, our export diversification in  non-traditional markets and sustained government help has also helped,” said A Sakthivel, chairman, Apparel Export Promotion Council.

Since the beginning of the fiscal exports have fallen for two consecutive months in May and June when it dropped by 1.11 per cent and 4.56 per cent respectively.

The rupee touched an all time low of 61.81 against the dollar last week.


Last fiscal the current account deficit (CAD) reached a historic 4.8 per cent of GDP due to a surge in import of gold and petroleum products. 

Govt to increase import duty on gold, luxury goods

PSU financial agencies to get nod for quasi-sovereign bonds, oil firms to get ECB window

The government is looking at increasing the import duty on gold and on non-essential, or luxury, commodities to reduce the current account deficit (CAD), Finance Minister P Chidambaram said on Monday.

The government would also allow public sector financial institutions to raise dollars through quasi-sovereign bonds. For the first time, Indian subsidiaries of multinational companies would be allowed to raise funds from their parents through a relaxed external commercial borrowing (ECB) window. Public sector oil companies would also be allowed to raise funds via ECB. The Customs notifications on import duty will be placed in Parliament on Tuesday, he said. The import duty on gold now is eight per cent.

The minister announced these proposals to keep the CAD at a three-year low of 3.7 per cent of gross domestic product (GDP) in 2013-14, bolstered by the lower trade deficit of June and July. "If the CAD is contained at $70 billion, it will amount to 3.7 per cent of GDP," Chidambaram said in a statement in the Lok Sabha.

FISCAL MATH

Measures to fetch an additional $11 bn to check the burgeoning CAD & arrest rupee fall $4 bn IRFC, PFC and IIFCL to be allowed to raise together through quasi-sovereign bonds for infrastructure sector needs $4 bn PSU oil companies to be allowed to raise external commercial borrowings $2 bn Gains expected from liberalisation of ECB norms $1 bn Gains expected from liberalisation of non-resident deposit schemes

The CAD had touched a record 4.8 per cent in 2012-13. In absolute terms, it was $88.2 billion. GDP is projected to be $1.89 trillion this financial year (assuming the rupee at 60 against a dollar). At this rate, $70 billion works out to 3.69 per cent of GDP. If GDP falls, the CAD in percentage terms would go up. The deficit estimate has been made on the basis of projections for exports and imports and the trade deficit this year.

Chidambaram said gold imports were likely to fall to 850 million tonnes this financial year from 950 million tonnes in 2012-13. He hoped that fall in gold and oil imports would save the economy $1.5 billion.

The government would ask public sector financial institutions Power Finance Corporation, India Infrastructure Finance Company Ltd and India Railway Finance Corporation to go for a quasi-sovereign bond to fund long-term infrastructure needs and to ask oil companies to raise ECB. He said oil PSUs and PSU financial institutions would raise $4 billion a year this way. The rate on dollar-denominated non-resident Indian deposits, or foreign currency non-resident deposits, is being de-regulated, the finance minister said, adding the Reserve Bank of India (RBI) would also issue a circular to allow Indian subsidiaries of multinational companies to raise funds through ECB. The minister said liberalisation of ECB norms and non-resident deposit schemes would fetch $2 billion to the exchequer.

As measures were taken to narrow the CAD, the finance minister said there was a need to do more to contain the deficit, reduce volatility in the currency market and to stabilise the rupee. In 2011-12, the government had to draw foreign exchange reserves of $12.8 billion to finance the CAD. "Last year, we had a larger CAD at $88.2 billion. Nevertheless, we were able to fully and safely finance the CAD, and do even better. We added $3.8 billion to the reserves," he said, adding there could be a small accretion to foreign exchange reserves this year.

The rupee has depreciated 12 per cent against the dollar since the beginning of this financial year. It closed at 61.28 on Monday.

It had hit an all-time closing low of 61.30 against the dollar last Wednesday. Depreciation of the rupee also means lower GDP in dollar terms, which would magnify any given absolute number of the CAD.

After touching $17.8 billion in April and $20.14 billion in May, the trade deficit fell drastically to $12.3 billion in June and $12.3 billion in July. Even then, it widened to $62.5 billion in the first four months of the current financial year, against $59.7 billion in the corresponding period of the previous year